Commonwealth Consolidated Acts Commonwealth Consolidated ActsApplication of steps
(1) To work out the allocation rate for a quarter, apply the following steps.
(2) Calculate the adjusted total balances for the quarter by:
(a) working out, for each day in the quarter, the total balances of all the accounts; and
(b) adding up those totals; and
(c) dividing the result by the number of days in the quarter.
For the purposes of this calculation, if an account balance actually exceeds $1,200, the account balance is taken to be $1,200.
Provisional rate
(3) Calculate the provisional rate for the quarter as a percentage (to 4 decimal places) using the formula:
where:
"Net interest amount" means the net interest amount for the quarter;
"Adjusted total balances" means the adjusted total balances for the quarter.
Note: Net interest amount is defined by section 39.
(4) Calculate the total balances for the quarter by:
(a) working out, for each day in the quarter, the total balances of all the accounts; and
(b) adding up those totals; and
(c) dividing the result by the number of days in the quarter.
Capped rate
(5) Calculate the capped rate as a percentage (to 4 decimal places) using the formula:
where:
"Gross interest amount" means the gross interest amount for the quarter;
"Total balances" means the total balances for the quarter.
Note: Gross interest amount is defined by section 38.
Allocation rate--comparison between provisional rate and capped rate
(6) Compare the provisional rate with the capped rate:
(a) if the provisional rate is less than or equal to the capped rate--the allocation rate equals the provisional rate; or
(b) if the provisional rate exceeds the capped rate--the allocation rate equals the capped rate.
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